Presented by Richard Campos RC Business Support
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Transcript of Presented by Richard Campos RC Business Support
RCbusiness support Limited
Presented by
Richard Campos
RC Business Support
Basic Business Planning and Funding
RCbusiness support Limited
Background
BT - Divisional responsibility for £1/2 billion operational budget
RCbusiness support Limited
BT - Divisional responsibility for £1/2 billion operational budget
BT – Section responsibility for operations planning
Background
RCbusiness support Limited
BT - Divisional responsibility for £1/2 billion operational budget
BT – Section responsibility for operations planning
BT – Project business plan submissions
Background
RCbusiness support Limited
BT - Divisional responsibility for £1/2 billion operational budget
BT – Section responsibility for operations planning
BT – Project business plan submissions
ntl and Tiscali - Project and programme planning
- Strategic planning and board advisor
Background
RCbusiness support Limited
BT - Divisional responsibility for £1/2 billion operational budget
BT – Section responsibility for operations planning
RCBS - Client business and strategic planning- Products to market and Due Diligence
BT – Project business plan submissions
ntl and Tiscali - Project and programme planning
- Strategic planning and board advice
Background
RCbusiness support Limited
Personal experience of running a business
Starting and running the business
RCbusiness support Limited
…is a temporary endeavour having a defined beginning and end (usually constrained by date, funding or deliverables), undertaken to meet particular goals and objectives, usually to bring about beneficial change or added value.
Personal experience of planning
Wikipedia
RCbusiness support Limited
What is a strategy?
“A strategy is a long term plan of action designed to achieve a particular goal”.
RCbusiness support Limited
What kind of business are you/do you want to be?
Start up – within 3 years maximum
Lifestyle – sub £100k
Large – over £100k
High Growth – over £1million
RCbusiness support Limited
Strategy can be defined in a hierarchy:
VISION
DELIVERY
Task Action
TacticShort term
Objective Planned target
Strategy/PlanLong term
RCbusiness support Limited
Where you are today
The Strategy“The Roadmap”
Task
Tactic
Where you want to be(Objective)
RCbusiness support Limited
Tactical View“Functional”
Where you are today
Where you want to be
X
Fin
anci
al
Mar
keti
ng
Op
erat
ion
sTime
RCbusiness support Limited
Day to Day View“Task”
Where you are today
Fin
anci
al
Mar
keti
ng
Op
erat
ion
s
MARKETINGBuild marketing plan by …Complete market research by…Confirm budgets by…
Where you want to be
RCbusiness support Limited
2
3
4
Profit(£k)
Sales (£k)
Employees
Year10 11 12103075
200
75
120
The ideal plan? The Orbit Diagram*
*Courtesy of The Winning Pitch
RCbusiness support Limited
Raising finance
1. An excellent product or service
To stand a chance of success, an investor requires 3 things from you:
RCbusiness support Limited
1. An excellent product or service
2. A convincing case for giving their money to you
Raising finance
To stand a chance of success, an investor requires 3 things from you:
RCbusiness support Limited
3. A good team of people
1. An excellent product or service
2. A convincing case for giving their money to you
Raising finance
To stand a chance of success, an investor requires 3 things from you:
RCbusiness support Limited
Raising finance
Family and friends
RDA and their agents
Banks
Venture Capitalists
RCbusiness support Limited
Raising finance
Family and friends
RDA and their agents
Banks
Business Angels
Venture Capitalists
RCbusiness support Limited
Raising funds
Venture Capitalists - VC
A venture capitalist will assume high risk in return for high reward.
RCbusiness support Limited
Raising funds
Business Angels - BA
An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start up, usually in exchange for equity
RCbusiness support Limited
What questions should you ask yourself?
Who?
What?
Why?
Where?
When?
How?
How much?
RCbusiness support Limited
Example
An environmental recycling company needed to raise £500k matched funds to develop a pre-production prototype. They produced a:
Business plan including the
RCbusiness support Limited
Business plan including the
Operational strategy
Example
An environmental recycling company needed to raise £500k matched funds to develop a pre-production prototype. They produced a:
RCbusiness support Limited
Business plan including the
Operational strategy
Marketing strategy
Example
An environmental recycling company needed to raise £500k matched funds to develop a pre-production prototype. They produced a:
RCbusiness support Limited
Business plan including the
Operational strategy
Marketing strategy
Financial management strategy
Example
An environmental recycling company needed to raise £500k matched funds to develop a pre-production prototype. They produced a:
RCbusiness support Limited
Business plan including the
Operational strategy
Marketing strategy
Financial management strategy
A strong team
Example
An environmental recycling company needed to raise £500k matched funds to develop a pre-production prototype. They produced a:
RCbusiness support Limited
What’s unique about what you have?
How much will it cost to make and buy it?
Ask Yourself:
Product or Service
RCbusiness support Limited
What’s unique about what you have?
How will people know about it and where can they buy it?
Ask Yourself:
How much will it cost to make or buy it?
Product or Service
RCbusiness support Limited
What’s unique about what you have?
Who owns the IP?
Ask Yourself:
How much will it cost to make or buy it?
How will people know about it and where can they buy it?
Product or Service
RCbusiness support Limited
A good team
Marketing
OperationsFinance
Do you posses the skills or resources in:
TheHoly
Trinity
RCbusiness support Limited
A CONvincing case?
Evidence of “Hurt Money”
Have you clearly and concisely produced:
RCbusiness support Limited
Evidence of “Hurt Money”
The business model
A CONvincing case?
Have you clearly and concisely produced:
RCbusiness support Limited
Evidence of “Hurt Money”
A clear and justifiable financial analysis
The business model
A CONvincing case?
Have you clearly and concisely produced:
RCbusiness support Limited
Evidence of “Hurt Money”
A clear and justifiable financial analysis
The Business Plan
The business model
A CONvincing case?
Have you clearly and concisely produced:
RCbusiness support Limited
The Business Plan
Isn’t Is
A profile of your business strategy and how it will help you achieve your objectives
A version of the Encyclopaedia Britannica!
RCbusiness support Limited
A client presented a business plan for comment. It had:
80 pages of closely typed text plus
Example
RCbusiness support Limited
A client presented a business plan for comment. It had:
80 pages of closely typed text plus
20 pages of financial analysis and 20 pages of appendices
Example
RCbusiness support Limited
A client presented a business plan for comment. It had:
80 pages of closely typed text plus
20 pages of financial analysis and 20 pages of appendices
Pages and pages of technical terms
Example
RCbusiness support Limited
The ideal plan…
…should be between 3 and 20 pages (max) plus appendix
but
There will always be exceptions
RCbusiness support Limited
Risk
Expose to a chance of loss or damage; “We risked losing a lot of money in this venture";
How do you prevent this?
RCbusiness support Limited
Identifies and assesses factors that may jeopardise the success of a project or achieving a goal.
and
Risk Analysis
Defines preventive measures to reduce probability of this from occurring and identifies actions to deal with these constraints when they develop to avert possible negative effects on the company.
RCbusiness support Limited
Risk Analysis
Risk L I Mitigation
No customers Build marketing plan to win customers
Excessive demand Identify resources to meet demand
M H
HH
RCbusiness support Limited
Risk Analysis
Risk L I Mitigation
L H
No customers Build marketing plan to win customers
Excessive demand Identify resources to meet demand
Legislation restricts trade No government plans
M H
HH
RCbusiness support Limited
Risk Analysis
Risk L I Mitigation
L H
M H
No customers Build marketing plan to win customers
Excessive demand Identify resources to meet demand
Legislation restricts trade No government plans
Exchange fluctuations Ensure adequate margins to absorbContract reviews at regular intervals
M H
HH
RCbusiness support Limited
Risk Analysis
Risk L I Mitigation
M H
H H
L H
M H
No customers Build marketing plan to win customers
Excessive demand Identify resources to meet demand
Legislation restricts trade No government plans
Exchange fluctuations Ensure adequate margins to absorbContract reviews at regular intervals
RCbusiness support Limited
Risk Analysis
Risk L I Mitigation
M H
H H
L H
M H
No customers Build marketing plan to win customers
Excessive demand Identify resources to meet demand
Legislation restricts trade No government plans
Exchange fluctuations Ensure adequate margins to absorbContract reviews at regular intervals
RCbusiness support Limited
Risk Analysis
Risk L I Mitigation
M H
H H
L H
M H
No customers Build marketing plan to win customers
Excessive demand Identify resources to meet demand
Legislation restricts trade No government plans
Exchange fluctuations Ensure adequate margins to absorbContract reviews at regular intervals
RCbusiness support Limited
Example
A £24million logistics company planning an acquisition to build a £40 million turnover business. They had:
No marketing or sales strategy
RCbusiness support Limited
No marketing or sales strategy
No deep experience on the board
Example
A £24million logistics company planning an acquisition to build a £40 million turnover business. They had:
RCbusiness support Limited
No marketing or sales strategy
No deep experience on the board
Haemorrhaging staff to a competitor
Example
A £24million logistics company planning an acquisition to build a £40 million turnover business. They had:
RCbusiness support Limited
Example
A cautionary tale of mismanagement
An international telecommunications provider was losing money but didn’t know why.
Sales OK
Customer services OK
Technical OK
RCbusiness support Limited
Example
A cautionary tale of mismanagement
An international telecommunications provider was losing money but didn’t know why.
Sales OK
Customer services OK
Technical OK
£100k stock!
And they went bust!
RCbusiness support Limited
The morale of this story:
Use the strategy (your plan) to manage your business and measure its effectiveness
Build a convincing case that sells your business to the investor